Hitmaker: Universal’s artists include Taylor Swift (pictured) and Elton John
Superfans are expected to help deliver growth at Universal Music.
The world’s biggest record company predicts profits will grow by 10 per cent every year for the next four years, while revenues are set to jump 7per cent.
Universal, whose artists include Taylor Swift and Elton John, delivered the forecasts in a market update yesterday.
The group pointed to ‘accelerating superfan monetisation’ and continued growth in streaming subscriptions as key factors in its growth outlook.
In 2023, Universal posted profits of £2billion and revenues of £9.4billion. It has been enjoying a boost as a result of Swift’s Eras concert tour.
The tour alone boosted merchandising revenue by 44 per cent in the second quarter this year.
Yesterday’s projections came as part of the group’s capital markets day, where it unveiled its plans for the year.
The targets contrasted with the group’s last update in July, when Universal’s Amsterdam-listed shares dropped the most since the company’s initial public offering in 2021.
Investors were left spooked after its streaming revenues disappointed investors.
But Universal Music has been pushing ahead with a global cost-cutting program.
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